The Enforcement Directorate’s raid on the premises of Hero MotoCorp chairman Pawan Munjal was conducted in connection with an alleged money laundering case. It is a clear indication that investigators have intensified their investigations against one of the most important businessmen of India and pushed down its share price. The Enforcement Directorate had conducted searches on his premises in Delhi and neighboring Gurugram, registered a case under the PMLA against him.
As a result of the input from the Department of Revenue Intelligence case, the Enforcement Directorate has taken action. Meanwhile, the Directorate of Revenue Intelligence has apprehended a close aide to Pawan Munjal at the airport with an enormous amount of undeclared foreign currency.
Searches were carried out by the Income Tax Office at Hero Motocorp’s offices on March 22, 2022, for suspected tax evasion. Searches of Munjal’s house were also carried out by the department. HT has asked for an answer from Hero MotoCorp. When the company issues a statement, the copy will update as well.
The company’s stock plunged by as much as 3 percent immediately after the announcement. The company shares were traded ₹3092.90 per piece with a decrease of 3.45% on BSE at 1 pm shares fell after touching their 52-week high mark of ₹3,242.85 apiece on BSE today. Over the last year, Hero Motocorp’s share price has gone up by 13.36% and 8.42% respectively.
According to CNBC TV18, searches have been conducted by the Enforcement Directorate at premises in Delhi and neighboring Gurugram pursuant to provisions of the Prevention of Money Laundering Act. The investigation relates to a complaint made by the Directorate of Revenue Intelligence against a person, who is alleged to be close to Munjal, who is being investigated for the possession of undeclared foreign currency.
The Income Tax Department had seized Munjal and Hero Motocorp in March 2022, as part of an investigation into tax evasion. According to the news agency Reuters, an investigation was launched by the Ministry of Corporate Affairs in a case linked to alleged financial improprieties in June this year which examined the relationship between the company and its third party supplier.
In 2001, Hero Corp, as regards the volume of motorcycle sales in a given calendar year, became world’s biggest two wheeler manufacturer and has been maintaining that position for over 20 years. Its activities are carried out in 40 countries, divided into Asia, Africa and South and Central America.
